BlackBerry calls reports on BB10 not secure enough for U.K. 'false'

Mike Lazaridis is setting his sights higher than a mere smartphone — his quantum tech fund aims to turn devices like Star Trek’s tricorder into reality

According to a report by the Guardian, the U.K.’s Communications-Electronics Security Group (CESG) rejected BlackBerry’s new Z10 smartphone after the device’s operating system failed security requirements that previous versions of the BlackBerry operating system had passed.

At issue is the security of BlackBerry’s Balance feature, which separates work and personal applications and activities, preventing data from being transferred between the two environments.

In a statement, a BlackBerry company spokesperson called the Guardian report “both false and misleading.” The Guardian has since pulled its report.

BlackBerry 10, which was first made available on the Waterloo, Ont.-based company’s Z10 smartphone in January, is widely regarded as BlackBerry’s last-ditch effort at winning back consumer and business users alike who have abandoned the platform for more modern iPhone and Android phones.

The report comes at a time when competitors such as Samsung are also touting the enterprise-friendly security features of their devices, in an attempt to steal BlackBerry’s business crown.

Related

“BlackBerry has a long-established relationship with CESG and we remain the only mobile solution approved for use at ‘Restricted’ when configured in accordance with CESG guidelines,” a BlackBerry spokesperson said.

“This level of approval only comes following a process which is rigorous and absolutely necessary given the highly confidential nature of the communications being transmitted.”

BlackBerry OS 7.1 was only approved by the CESG in December 2012 for access to documents classified as high as “Restricted,” which is two levels below “Secret.”

By that time, BlackBerry 10 had already received FIPS 140-2 certification in the U.S. – before it was even released – which company vice-president of security product management and research Michael Brown said would ensure new BlackBerry phones would be “ready to meet the strict security requirements of government agencies and enterprises at launch.”

Samsung’s Galaxy S, Galaxy Tab and Galaxy Note devices have also received the U.S. government’s FIPS certification.

I think they’ve already lost the bigger ground war with the enterprise

In a tweet, Guardian author Charles Author wrote that it was “wrong” to suggest that the CESG had rejected the BlackBerry 10 operating system, when, in fact, it had simply yet to be evaluated fully.

“Discussions with Blackberry are ongoing about the use of the Blackberry 10 platform in government,” according to a statement issued by the CESG. “We have not yet performed an evaluation of the security of the platform, but we expect to be issuing Platform Guidance in the summer. This will cover a number of platforms, including Blackberry 10 (and the use of ‘Balance’).”

The CESG’s statement went on to cite a “long-standing security partnership with Blackberry, and this gives us confidence that the Blackberry 10 platform is likely to represent a viable solution for UK Government.”

Delayed government approval in the U.K. could cost BlackBerry millions, according to the Guardian’s report. Both the government and Britain’s National Health Service are two of BlackBerry’s biggest clients in the U.K. with tens of thousands of users.

However, others believe BlackBerry’s fight has already been lost.

“I think ultimately consumer sell-through is going to be the better gauge, and not whether a European government certifies or not,” said Wedge Partners analyst Brian Blair, pointing to BlackBerry’s current audience, which is 80% to 90% consumer.

“I think they’ve already lost the bigger ground war with the enterprise.”

Earlier this month, BlackBerry revealed that an “established” partner had placed an order for one-million of its newest BlackBerry 10 phones.

AT&T, meanwhile, will begin selling BlackBerry’s Z10 smartphone on Friday, with Verizon following suit next week.